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MyTravel will not rule out commission cut
MyTravel UK managing director John Bloodworth has refused to rule out commission cuts following rival TUI’s move down to a base level of 7% from next month.
Speaking following the announcement of the MyTravel group’s improved financial results following a period of restructuring, he said discussions were taking place with third party retailers.
“We will evaluate our retail distribution based on the cost of sale,” said Bloodworth.
Insisting that MyTravel would “stay competitive in the marketplace” he added that talks would take place on an individual basis – indicating that the company was unlikely to follow TUI by adopting a blanket reduction in commission.
More than 43% of the company’s UK sales come via third parties.
Both First Choice and Thomas Cook have indicated they will be reviewing commission levels in the light of TUI’s move, as reported by TravelMole.
Meanwhile, MyTravel has introduced dynamic packaging through a new agents’ website for Bridge, Cresta and Tradewinds as part of plans to increase the proportion of internet sales from under 20% to 24% in 2005-06.
Bloodworth attributed a recent 7% rise in sales through Going Places to the 90% of staff who have been retained and transferred to other stores following the closure of 110 branches.
Report by Phil Davies
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